Scotland proved the most popular destination for new home buyers in 2006, with more buyers looking to move into the region than any other destination in the UK, fuelling unprecedented price rises.
While many other areas across the UK, such as the West Midlands, continued to suffer from outward migration and falling house prices, Scotland emerged as the most popular destination with continued inward migration (recorded as 4.8%) driving up prices. The average price of a new home in Scotland rose 13% in 2006, the highest annual price increase after London.
Previously ranked as the second most affordable place to buy a new home in 2005, prices over the last year have experienced drastically high growth, moving Scotland seven places up the league table, to make it the 3rd most expensive place to buy a new home in 2006.
David Bexon, Managing Director, SmartNewHomes.com said: “The new homes market in Scotland has proved to be one of the real hotspots of 2006, with rapidly growing prices that now rival those traditionally exclusive to the south of England.
“Key towns with strong economic growth and the considerable number of detached properties (as opposed to apartments) that are still being built here have significantly impacted on Scotland’s recent success and I would predict prices to continue to rise in 2007.
“Cities such as Edinburgh and Glasgow have spearheaded this growth and towns such as Stirling, now boast some of the most expensive new homes in Scotland.
“Prices in major Scottish towns are fast catching up with those found in London and detached properties are achieving a premium, in part fuelled by the number of professionals moving into the region to take up roles in the cities flourishing business districts."
With new home prices sticking in the south east last year and Scotland looking set to continue its reign as one of the most popular locations for new home buyers, 2007 could see Scotland moving up the rankings to become the second most expensive place to buy a new home in 2007.
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Date Published: 12 January 2007
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